Keynesian Put

See: Keynesian Economics.

"Put your economics where your math is," Keynes once said (we think).

A Keynesian Put is the expectation that firms will be supported by fiscal policy stimuli. So, not central bank stuff...that’s monetary policy. We’re talking fiscal policy stimuli; basically tax cuts and/or increased government spending, both which should boost the economy.

While Keynesian economics is not new (See: Keynesian Economics), the Keynesian Put was only coined in 2016. It's a play-on-words of Keynesian economics (which is all about spending to boost the economy) and the Greenspan Put (which refers to the old Fed Chair Al Greenspan’s economy-friendly monetary policy).

The idea is that we’ve had monetary policy in economy-friendly gear for a long time now...pretty much since the Great Recession from the subprime mortgage crisis...and that governments will therefore be left with fiscal policy measures in the future to boost the economy...and everybody knows it. Well, everybody who is paying attention...like big banks.

Everything will be fine, they say. The government has the economy’s back, so they’ve got our backs too, they say.

They say a lot of things over there.